Analyzing Electronic Arts (EA) and Finjan Holdings (FNJN)
Electronic Arts (NASDAQ: EA) and Finjan Holdings (NASDAQ:FNJN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
93.8% of Electronic Arts shares are held by institutional investors. Comparatively, 34.2% of Finjan Holdings shares are held by institutional investors. 2.6% of Electronic Arts shares are held by insiders. Comparatively, 9.6% of Finjan Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Electronic Arts and Finjan Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Electronic Arts currently has a consensus target price of $117.36, indicating a potential downside of 0.96%. Finjan Holdings has a consensus target price of $4.00, indicating a potential upside of 86.05%. Given Finjan Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Finjan Holdings is more favorable than Electronic Arts.
This table compares Electronic Arts and Finjan Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Electronic Arts and Finjan Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Electronic Arts||$5.02 billion||7.29||$1.58 billion||$3.74||31.68|
|Finjan Holdings||$36.60 million||1.61||$22.66 million||$0.37||5.81|
Electronic Arts has higher revenue and earnings than Finjan Holdings. Finjan Holdings is trading at a lower price-to-earnings ratio than Electronic Arts, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Electronic Arts has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Finjan Holdings has a beta of -0.7, meaning that its share price is 170% less volatile than the S&P 500.
Electronic Arts beats Finjan Holdings on 8 of the 14 factors compared between the two stocks.
Electronic Arts Company Profile
Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. The Company markets and sells its games and services through retail channels and through digital distribution channels. The Company’s PC games and additional content can be downloaded directly through its Origin online platform, as well as through third-party online download stores. Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.
Finjan Holdings Company Profile
Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The companys technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.
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